Business entities in Latvia in 2022

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Healy Consultants assists our Clients to setup the optimal corporate structure for their business needs. There are several business entities in Latvia, the most common being the LLC. Foreign companies can also setup a JSC, a Branch office or a Representative office.

Limited Liability Company (SIA)

  • This is the most common business entity in Latvia. A Latvian LLC must appoint at least 1 shareholder and 1 director, who can be of any nationality. The minimum share capital required to set up a LLC is €2,800 with at least 50% deposited at registration;
  • Companies must be audited if they fall under two of the following three criteria i) over €800,000 in annual turnover ii) €400,000 in assets iii) average of 25 employees during the year;
  • There is a special type of LLC called the micro enterprise, which is an LLC with i) all individual shareholders ii) annual turnover less than €100,000 iii) less than 5 employees and iv) salary of each employee less than €720 per month. The minimum share capital required to set up a micro enterprise is €1.
  • Our Clients who wish to setup a holding company in Latvia, register an LLC. They then use this LLC as the corporate shareholder for subsidiaries around the world.

Joint Stock Company (AS)

  • This Latvian business setup can be incorporated with 1 shareholder and 1 director who can be of any nationality. However, if the company is publically listed, 3 directors will be appointed. The minimum share capital required for a JSC is €35,000;
  • JSCs can be setup either privately or via public subscription by listing on the stock exchange. There is only one stock exchange in Latvia, namely the NASDAQ OMX Riga, which has only 32 corporations listed. Our Clients may alternatively list their JSC in other stock exchanges in the EU.

The Branch office

  • The scope of operations of a branch office will be defined by the parent company. Additionally, the parent company will be accountable for all the liabilities of its branch;
  • A branch office is liable to the same reporting, tax and audit requirements as a resident company.

The Representative office

  • This Latvian business setup is not allowed to engage in commercial or productive activities. This entity can engage only in i) promoting the business of the parent company and ii) conducting market research;
  • A representative office is not required to have statutory audits.

Table of Comparison between Latvia entities

  LLC JSC Branch office Rep Office
How long to set the company up? 4 weeks 5 weeks 5 weeks 4 weeks
How long to open company bank account? 4 weeks 4 weeks 4 weeks 4 weeks
Legal Liability? Limited Limited Unlimited Unlimited
Wholly Foreign owned? Yes Yes Yes Yes
Minimum paid-up share capital? €2,800 €35,000 €0 €0
% of the share capital paid up before registration 50% 100% 0 0
File annual tax return? Yes Yes Yes No
Tax Registration Certificate required? Yes Yes Yes No
Corporate Bank Account? Norvik Bank Swedbank SEB Bank ABLV Bank
Does our Client need to travel? No No No No
Resident director required? No No No No
Resident shareholder required? No No No No
Minimum directors allowed? 1 1 1 1
Minimum shareholders? 1 1 1 1
Latvian resident company secretary required? No No No No
Corporate shareholders allowed? Yes Yes Yes Yes
Corporate director(s) allowed? Yes Yes Yes Yes
Public register of shareholders and directors? Yes Yes Yes Yes
Latvia Corporate Tax Rate? 15% 15% 15% 0%
Annual financial statements required? Yes Yes Yes No
Statutory audit required? Yes Yes Yes No
Allowed to issue sales invoices? Yes Yes Yes No
Allowed to sign contracts? Yes Yes Yes No
Allowed to import and export goods? Yes Yes Yes No
Can rent an office in Latvia? Yes Yes Yes Yes
Can buy Latvian property? Yes Yes Yes No
Can own equity in other Latvian companies? Yes Yes Yes No
Total Latvia business setup costs in Yr. 1 €8,990 €10,500 €9,580 €8,730
Subsequent annual costs (incl. accounting and tax fee) €3,580 €5,070 €5,020 €5,020
Sample Engagement fee Invoice View invoice PDF View invoice PDF View invoice PDF View invoice PDF

Contact us

For additional information on our business setup services in Latvia, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
  • Client Engagements Manager
  • Contact me!
latvia Cabinet of Ministers latvian MInistry of Finance latvian Chamber of Commerce (LLCI) Central Statistical Bureau of Latvia Investment and development agency of Latvia latvia company register